Sharply Deteriorating ProfitabilityMargins shifting deeply negative and a large increase in annual losses indicate structural issues in project execution, pricing or cost control. Persistent unprofitability erodes retained earnings, limits reinvestment, and forces reliance on cash or financing to sustain operations absent a credible turnaround.
Sustained Revenue DeclineMulti-year top-line contraction reduces scale, weakens bargaining power with suppliers and customers, and compresses margins. Declining revenue undermines predictability of recurring waste contracts and the ability to rebuild profitability, raising execution risk for medium-term recovery plans.
Equity Erosion & Negative ROEMaterial decline in equity and strongly negative ROE reflect cumulative losses that diminish capital cushions. This weakens borrowing capacity, increases sensitivity to further losses or shocks, and can constrain strategic investments or bidding for large contracts without fresh capital or sustained profitability.